You'd have to be more specific regarding the category, since each reacts different to interest rate changes and conditions. Is it Floating Rate, Fixed Floaters, low spread Rate Resets, high spread Rate Resets, Fixed Straight Perpetual, Retractable, Split-Share?
i saw that too.
Yes, because prospectus offering states reset BOC 5yr (now~2.09%) + 2.37% = ~ 4.46%Nice to see some investors are benefitting from rising interest rates.
Enbridge Inc. announced that the annual dividend rate for the Series D shares (ENB.PR.D) will be increased from 4.00% to 4.46% on March 1, 2018. The shares will pay this new dividend rate from March 1, 2018 to March 1, 2023.
Maybe the rate-reset type of preferred shares which are gaining in this environment.
Last ZPR distribution I received was $0.041 per unit or $0.492 on an annualized basis.ZPR - an ETF that aims to match a Laddered Canadian Preferred Share Index has been going up in price. Maybe overbought now at C$11.94? Yield only 3.84%. I was looking at a way to buy into the preferred market, but hesitated to buy more of ZPR at this level.
Any other suggestions? Maybe a few individual rate resets or another fund?
Indeed the upcoming January distribution shows 0.038, same as November 2017. The one from December was 0.041 but that must have something a little extra. Oh well.Actually the January 2018 distribution is dropping to $0.038 per share, which is kind of surprising, I was expecting it to increase. I expect the distribution and yield to creep up over the next few years with the rate increases we’ve had. Looking back to 2014, the price was around $14, distribution for the year was $0.6040 for the year or just over 0.05 per month. So the yield was around 4.3% in 2014.
The 5 year Canada bond yield started at around 1.6% at the beginning of 2014 and it crashed down to 0.6% the beginning of 2015. So as long as the 5 year Canada bond Yield stays at the current levels around 2%, then the yield on ZPR should move up. Hopefully the price of ZPR moves back up to $14 in the next couple of years.
You better let BMO know - They say it is 3.82% (or 3.85% today). And so do all the on-line sites I have looked at. Presumably distributions depend on just which preferreds they hold at the time.Last ZPR distribution I received was $0.041 per unit or $0.492 on an annualized basis.
This gives 4.12% at current cost of $11.94